Aegean Mining Exporters Association Holds "Mining Sector Meeting" in Denizli
The Turkish mining sector, which has provided a value addition of $60 billion to the Turkish economy by harnessing the underground riches of Turkey with the motto "Foreks - Mining Our Life", faced significant challenges in 2024 due to the disinflation policies implemented in the country. İbrahim Alimoğlu, President of the Ege Mineral Exporters' Association, stated that the sector could not enter 2025 with much hope due to problems accessing financing, a low exchange rate, high inflation, and a contraction in export markets, suggesting that 2025 might be marked as another tough year.
Speaking at the “Mining Sector Meeting” organized by the Ege Mineral Exporters' Association in cooperation with the Denizli Chamber of Commerce and the Denizli Stone Merchants Association, Alimoğlu emphasized that the forest fees and license charges would increase by the announced revaluation rate of 44%. He noted that while their costs are increasing, the exchange rate is not rising. “We support the fight against inflation, but as exporters, we want to ensure the continuation of an ecosystem where we can export. Nowadays, our exporters have to export at cost or even at a loss. The Central Bank of the Republic of Turkey offers a 2% difference when foreign currency from exporting firms is converted to Turkish lira. We want this difference increased to 5%,” he said.
Alimoğlu also mentioned that they had filed a lawsuit with the Council of State regarding recent developments that have significantly burdened the sector. He pointed out, “The Regulation on the Implementation of Article 16 of the Forest Law, published in the Official Gazette dated September 4, 2024, introduced regulations that significantly restrict mining activities. We have filed a cancellation lawsuit with the Council of State alongside our relevant NGOs. To start mining operations, we must obtain permits from 24 different institutions and organizations according to 8 ministries, 7 laws, 87 regulations, 8 by-laws, and 16 international agreements. One of these is forest permits. We are gravely concerned that the guarantee of licenses will disappear due to the Regulation on the Implementation of Article 16 of the Forest Law, which could lead the sector to the brink of extinction.”
Denizli Exporters' Association President Hüseyin Memişoğlu shared that they achieved $4.2 billion in exports in 2023 and expect to close 2024 with $4.4 billion in exports. Memişoğlu congratulated the exporters for managing to export under these exchange rates and noted, “When we talk to our ministers, they say 'exports are increasing.' Exports are indeed increasing, but we are selling at a loss or without profits. Hopefully, we will all soon win the battle against inflation indexed to foreign currency and achieve favorable exchange rates for export.”
Memişoğlu, who provided information about Denizli's sectoral richness in exports, stated that Denizli ranks as the 9th province in Turkey in terms of export volume and aims for a target of $4.7 billion in exports for 2025. He mentioned, “We are in a leading position in processed natural stone exports across the country. In 2023, we exported $213 million, and as of December 15, 2024, we have exported $220 million in processed natural stones.”
Memişoğlu also conveyed that Türk Ticaret Bankası has started operating with four branches to provide financial support to exporters and shared that a branch of Türk Ticaret Bankası will be opened within the Denizli Exporters' Association soon.
Selim Kasapoğlu, President of the Denizli Chamber of Industry, addressed that although Denizli's exports did not drop in 2024, profitability in exports has diminished, making it a year where industrialists and exporters from Denizli fell into negative figures in some areas. “As you know, Turkey has been struggling with disinflation policies for a while to reduce inflation. Of course, this is a crucial fight,” Kasapoğlu remarked. He added, “To address the complaints about the economy and production in Turkey, we must first reduce inflation, and the business world has supported this process so far. However, as we enter 2025, we must emphasize that along with exchange rate policies, production, employment, and export policies need to be implemented. Since there will be a new arrangement in the minimum wage starting in January, our labor costs will rise. The pressure on the exchange rate continues. This indicates that we will enter a challenging process in 2025. The decline in interest rates may take until December and January, and in my opinion, it could take until June and July for this interest rate reduction to meaningfully reflect in production. Therefore, we can say that we are facing a challenging process in the first six months of 2025.”
Kasapoğlu also discussed expectations for a new incentive package aimed at labor-intensive sectors such as textiles, ready-to-wear, and furniture, stating that these packages would support and provide relief to industrialists and exporters. During a session moderated by İ. Cumhur İşbırakmaz, Secretary General of Ege Exporters' Associations, Turkish Eximbank Aegean Regional Manager Gülom Timurhan, Deputy General Manager of Türk Ticaret Bankası Ahmet Zafer Seyar, and IGI A.Ş. Deputy General Manager Yiğit Alp Akdaş shared the financial resources they provide to exporters. The second session, moderated by journalist İrfan Atasoy, featured speakers Denizli Chamber of Industry Vice President Mehmet Serter and Denizli Exporters' Association Board Member Celil Kılınç.
As part of the “Mining Sector Meeting” held in Denizli, Ege Mineral Exporters' Association President İbrahim Alimoğlu and accompanying delegation visited Denizli Governor Ömer Faruk Coşkun and Denizli Metropolitan Municipality Mayor Bülent Nuri Çavuşoğlu at their offices. The second meeting of the “Mining Sector Meeting” organized by the Ege Mineral Exporters' Association will take place on December 25, 2024, Wednesday, at 3:00 PM at the Muğla Chamber of Commerce and Industry.